Leo Cussen Centre for Law

Practical Training Course

Accounts

Exercise 4: Answers

Payment of Trust Moneys

EXERCISE 4(a): George Hammer paid you in cash, therefore it can be drawn on
immediately after being banked. The payment can be made as
requested.

210898

Date 16/3/XY 16 / .3 / XY
Payee K. Carew Pay K. Carew __________________________________________
Counsel’s fee on the sum of seven hundred and fifty dollars ___________________________________ Or Order
Mag. Crt.
appearance
104/20XY G ___________________________________________________ $ 750.00
Hammer: Mag Crt
Fwd $ TRAINING PURPOSES ONLY
Chq $ 750.00
LEO CUSSEN LAW PRACTICE TRUST ACCOUNT L. Cussen
Bal $
210898 210898 083 000

TRUST ACCOUNT CASH PAYMENTS BOOK

For Month Ending 31 March 20XY Page 10 -
Date Chq Client File Purpose Paid To Amount
No / and Matter No. of $ c
EFT payment
20XY
16/3 210/ 898 G. Hammer re: 104/XY Counsels fees K. Carew of 750 00
Dangerous on appearance Counsel
Driving

CLIENT HAMMER, George MATTER Dangerous Driving FILE NO. 104/XY

ADDRESS 8 George St, Mentone OTHER PARTY Prosecution

TRUST ACCOUNT
DATE PARTICULARS FORM CHQ. CP/CR DEBIT CREDIT BALANCE
20XY MONEY No./REC. BOOK
REC’D IN No. PAGE No.
16/3 Fr. G. hammer, Cash: on a/c of Cash 0252 CR p.6 750 00 750 00
Counsels fees on appearance
16/3 To K. Carew – Counsels fees in 210898 CP p.10 750 00 NIL
respect of appearance
 EXERCISE 4(b): Amy Johnson paid you by bank cheque. It should clear in 3 days and
you ring the Bank to check you can draw against it on the 21 March so
the Payment can be made as requested. A more efficient way of
dealing with this transaction would have been to ask Amy Johnson to
make her bank cheque payable direct to Maud Windspear. You could
then have transited the cheque (Reg. 3.3.27) and avoided paying the
cheque in to and out of your trust account.

210899

Date 21/3/XY 21 / .3 / XY
Payee M. Windspear Pay To Leo Bank for bank cheque to M. Windspear ____________________________
Bal. of PM received the sum of twenty thousand dollars ____________________________________________ Or Order
150/xy: A. Johnson from __________________________________________________
M. Windspear
$ 20,000.00
Fwd $ TRAINING PURPOSES ONLY
Chq $ 20,000.00
LEO CUSSEN LAW PRACTICE TRUST ACCOUNT L. Cussen
Bal $
210899 210899 083 000

TRUST ACCOUNT CASH PAYMENTS BOOK

For Month Ending 31 March 20XY Page 10 -
Date Chq No Client File Purpose Paid To Amount
/EFT. and Matter No. of $ c
payment
20XY
16/3 210/ 898 G. Hammer re: 104/XY Counsels feeS K. Carew of 750 00
Dangerous on appearance Counsel
Driving

21/3 210/899 Amy Johnson 150/XY Bal of M. 20,000 00

from M. purchase Windspear
Windspear money to
purchase hair purchase
salon Hairdresser’s
Salon

CLIENT JOHNSON, Amy MATTER Purchase of Joanne’s Hair Salon, Bentleigh FILE NO. 150/XY
ADDRESS 9 William St, Sunshine OTHER PARTY Re: Maud Windspear

TRUST ACCOUNT
DATE PARTICULARS FORM REC/ CR/CP DEBIT CREDIT BALANCE
20XY MONEY CHEQUE PAGE
REC’D IN NO No.
19/3 Fr Amy Johnson, bank Bank 0253 CR p6 20000 00 20000 00
cheque: balance of purchase Cheque
money required to settle
21/3 To Leo Bank for bank 210899 CP p10 20000 00 NIL
cheque to Maud Windspear
being balance of purchase
money due on settlement.
 EXERCISE 4(c): Rosemarie Grant paid you a cheque for $500.00 on the 16 March 20XY.
You cannot draw against this amount until the cheque has cleared. You could NOT pay the
filing fee on the 16 March 20XY unless you paid the fee out of your funds in your office
account and reimbursed yourself later.

The following entries evidence the payment made on the 28 March

20XY, after the cheque received has cleared.

210900

Date 28/3/XY 28 / .3 / XY
Payee Family Court Pay Federal Magistrates Court __________________________________________
Aust. Filing fee on
Dissolution R.Grant v the sum of Four hundred and thirty two dollars ___________________________________ Or Order
G. Grant
157/XY __________________________________________________ $432.00
Fwd $ TRAINING PURPOSES ONLY
Chq $ 432.00
LEO CUSSEN LAW PRACTICE TRUST ACCOUNT L. Cussen
Bal $
210900 210900 083 000

TRUST ACCOUNT CASH PAYMENTS BOOK

For Month Ending 31 March 20XY Page 10 -
Date Cheque Client and File Purpose Paid To Amount
No /EFT. Matter No. of $ c
payment
20XY
16/3 210/ 898 G. Hammer re: 104/XY Counsels feeS K. Carew of 750 00
Dangerous on appearance Counsel
Driving

21/3 210/ 899 Amy Johnson 150/ XY Bal of To XXX

from Maud purchase Bank
Windspear money to forwarding 20,000 00
Purchase of purchase to Maud
Hairdressing Hairdressing Windspear
Salon Salon

28/3 210/ 900 R.Grant v 157/XY Filing fee on Federal

Grant: dissolution Magistrate
Dissolution of s Court 432 00
marriage

CLIENT GRANT, Rosemarie MATTER Dissolution of Marriage FILE NO. 157/XY

ADDRESS 54 Smith St, Coburg OTHER PARTY Re: George GRANT

TRUST ACCOUNT
DATE PARTICULARS Form CHQ. CR/CP DEBIT CREDIT BALANCE
20XY Money No./REC PAGE
Received No. No.
in
16/3 Fr R. Grant on a/c of Fed Mag Cheque 0251 CR p.6 500 00 500 00
Crt filing fee & costs
28/3 Fed Mag Court – filing fee on 210900 CP p.10 432 00 68 00
dissolution
 Day 1
Leo Cussen Centre for Law
Practical Training Course

Accounts

Exercise 4: Answers

Payment of Trust Moneys (Continued)

In the following questions state your reasons with reference to any rules where
appropriate.

(d) Mr & Mrs Charles Windsor sell their jointly owned matrimonial home. You are holding
$25,500.00, the net proceeds from the sale. Mrs Windsor attends your office and
requests a cheque made payable to her for the whole amount. Are you permitted to
comply with her instructions?

No. You are acting for both clients, not just Mrs Windsor. Instructions from both
parties should be obtained.

(e) You act for Mrs Mary Winter in her personal injuries claim. She attends your office and
asks for the proceeds of the claim, being $5,000.00, in cash.

Are you permitted to comply with her instructions?

No, see Reg. 3.3.12 (2) (a) LPR.